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elango.parameswaran (Officer)     27 February 2024

Signing of notes of accounts

Dear all

Ours is a GoI funded project in which there are certain Vertical Societies.

The Statutory Auditor has signed and produced the Financial Statements for the FY 2022-23

But refusing to give the Notes on Accounts even after the completion of the Statutory audit in September 2023.

In the Notes on Accounts he has pointed many similar points for all the Vertical Societies though the activities of the entities differ in nature.

A small example... in all the Verticals Cash books are properly maintained and have been verified by the Concurrent auditors and the Statutory Auditor also. But in the notes on accounts, the Statutory Auditor is mentioning that "No Cash Book maintained" .Like this he has pointed out many information which are not relevant to each entity. He has prepared a common Notes on Accounts for all the entities and pressurize all to sign the notes on accounts by the respective Concurrent Auditors, CAOs, Programme Directors before he signs the notes. Is it correct as per Accounting / Audit standards. Our view is that the notes on Accounts containing various objections raised by the Statutory Auditor himself is to be signed by him alone. Please confirm with rule provisions.   


 1 Replies

T. Kalaiselvan, Advocate (Advocate)     28 February 2024

If the audit objections are not legally viable or not maintainable or there is no proper reason to level this observation, you can give reply based on the facts and challenge the observation by issuing a notice to the auditor who is acting in violation of the stipulated law for this purpose

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